Coronavirus play Co-Diagnostics stock has taken a wild ride recently. The company went public in July 2017 and, until last year, it had a rocky start, with occasional breakouts but an overall downtrend. That all changed in January 2020 as demand for its tests and other molecular tools took off. From an intraday low of 88 cents a share on Jan. 10 of last year, its stock has shot up more than 2,000% to near 18 Wednesday afternoon. Co-Diagnostics (CODX) Relative Strength (RS) Rating jumped from 86 to 91 Wednesday.
The 91 RS Rating means that Co-Diagnostics has outperformed 91% of all stocks, regardless of industry. The market’s biggest winners tend to have an RS Rating north of 80 in the early stages of their moves. Co-Diagnostics rose to an intraday high 20.69 Wednesday, its highest point since Aug. 14, before consolidating.
Other Key Co-Diagnostics Ratings
In addition to the rising RS Rating, Salt Lake City-based Co-Diagnostics has a 90 Composite Rating.
IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Importantly, the maker of tools for detection of infectious diseases has an A Accumulation/Distribution Rating on an A+ to E scale with A+ tops. That A A/D Rating means that institutional investors are heavily buying its stock. With roughly 70% of trades made by large institutions, having them accumulate Co-Diagnostics shares is a bullish sign.
A Yellow Flag On Past Performance
Its so-so 74 EPS Rating is a yellow flag as the small-cap was, until recently, losing money. But in early-stage growth it’s not unusual for companies to spend more than they make as they expand their product portfolio and market reach.
However, in terms of fundamentals its earnings grew 630% in its fiscal Q3, reversing from a 10-cent a share loss the same quarter a year ago to 53-cents per share profit. The Street estimate for 2020 EPS is $1.56 a share, vs. a 36-cent loss in 2019. Revenue also increased, from virtually nothing a year ago to $21.8 million in its most recent quarter.
The company holds the No. 24 rank among its peers in the Medical-Biomed/Biotech industry group. Emergent Biosolutions (EBS), Horizon Pharma (HZNP) and Ligand Pharmaceuticals (LGND) are among the top 5 highly rated stocks within the group.
Co-Diagnostics is now considered extended and out of buy range after clearing a 6.34 buy point in a first-stage cup without handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
When you’re researching the best stocks to buy and watch, keep a close on eye on relative price strength (RS Rating). This exclusive rating from Investor’s Business Daily identifies share price action with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price movement over the trailing 52 weeks holds up against all the other stocks in our database.
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